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Home Business Management
Vital To Business Health

This is one of the most dangerous areas of your home business. The danger comes from spending either too much time or too little time with it.

If you spend too little time, you jeopardize your business by not having proper recording keeping, so you don't know where you stand and what resources you have available.

Too little time can mean you have not developed good banking relationships with your banker. It can mean you have not taken the steps necessary to protect your business legally and not have the proper insurances to protect your business from the unexpected.

Too much time means that you are not focusing enough on the activity that will bring the money into your business.

Accounting, Finance and Taxes

Unless you love numbers, this can be a really dull area. The record keeping necessary for it is not always fun to do, particularly filling out the government tax forms.

Fortunately accounting has been made much easier with the computer accounting software programs available today. They have eliminated the need to "know" accounting. They are, after a short learning curve, relatively easy to use. They also have many useful reports built into them to help you understand where your business stands financially.

Proper accounting helps you to get the credit and financing you need to expand your business.

Tax preparation is made easier. You can print out a report to do the taxes yourself or have your accountant do them.

Accountant vs CPA

Most home based businesses do not need a CPA. If you are a public corporation with stock holders, then you might want to consider it. They have the credentials to be able to issue certified financial statements, that they were compiled in accordance with the laws and with generally accepted accounting practices.

A good bet is an accountant who is certified to represent you before the IRS. That means that they can operate as your agent before the IRS on any tax matters. You do want an accountant who knows taxes.

The government will get enough of your money without your giving them more than they are legally entitled too. You keep your money by taking advantage of the tax deductions that you are entitled too.

Legal

If your like most Americans, you think of attorneys as someone you turn to in case your in trouble. At one time that was true, but we have become a very legalistic society. Today you are three times more likely to be in court than you are to be hospitalized. You do not have to be in the wrong for someone to sue you.

So what does this mean to your business? It means you must become proactive. To protect your home based business you must think in terms of taking preventive measures. You do that by consulting an attorney before you take any action, you use them to help keep you out of trouble.

While you may not be able to stop someone from filing a law suit against you, you can at least take the steps to lessen the chance that they can win.


"A home based business gives you all the benefits of a non-home based business without the burden of the high overhead."
~ Larry Louzon

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"A home based business gives you all the benefits of a non-home based business without the burden of the high overhead." ~ Larry Louzon
"The business of America is business" ~ Calvin Coolidge
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