General Ledger Accounting – Keeping Track of Your Business Information

If you are in business, you have data-it’s just a simple fact. It’s what you DO with that data that can greatly affect your business success. Do you throw all of your invoices and receipts into a drawer? Or worse yet, do you not even keep that information at all? Doing either of these leaves you in the dark about your business finances, which can quickly end in the demise of your business. This is why general ledger accounting was created. General ledger accounting is a system whereby, in a double entry accounting system, each transaction is posted using debits and credits. The purpose of general ledger accounting is to know where you stand financially, so you won’t have to guess about your financial position, and you can make better decisions.

To record, in the formal sense of accounting, means to make an accounting entry in a journal or in a ledger. What has previously handled in a paper journal is now typically handled by a computerized accounting system. The analysis of business transactions in the form of old-fashioned journal entries is still important; it is merely handled in a different (and more efficient) method as technology has grown over the years: with a computer and software.

Each transaction must somehow be recorded so that people may be able to refer back to the details of that transaction. The ‘journal’ serves as a diary where each transaction is recorded. The next step is to take the same transactions and record them into the ledgers. Journal transactions are recorded chronologically as units. The ledger is organized into as many different accounts as needed to accumulate the pieces posted from the journal, and are classified according to significant financial elements.

Once a general ledger accounting system is set up and in use, it provides extremely useful information to the business owner, allowing him or her to base future decisions on solid financial information.

Small Business Information

So you have had it with the 9 to 5, your sick of your boss always looking over your shoulder, and the idea of you doing all the work so the executives can reap all the benefits makes you sick to your stomach. So you have decided to go out on your own and start a new business. That is a great idea and I am here to help you with some of the tougher questions that may come to mind.

What’s next? Well you need to decide how you will structure your business for tax and liability purposes. If you do nothing, and start the business alone, you are considered a sole proprietor. If you do nothing and start the business with someone else, that business will be considered a partnership. You can also form a corporation or limited liability company (LLC). The last two options are a bit harder to set up, but the liability is passed on to the business and not yourself or your partners. You should seek the advice of an accounting expert before making this decision; once the decision is made it is difficult to change the company type and it’s an accounting nightmare.

Sole proprietorship and partnerships are taxed on your normal 1040. You figure out how much money the business brought in and how much was spent on the business. This is the number you add to your 1040. This option is very easy for taxes very easy to run. The main problem with sole proprietors and partnerships is you can become personally responsible for all debt and damages. For example, if you run into credit problems with your suppliers they can come after you and your partners for payment. Also, any damage that your company may cause and is unable to make restitution for could become your personal financial obligation. This includes liens on personal property.

To distance yourself from personal liability you need to form a corporation (INC, C, or Corp) or a limited liability company (LLC). Both of these allow the business to become a separate entity for tax purposes and liability. The downside to these types of businesses is the extra paperwork needed to stay compliant and start up costs. You can search the internet for companies that will form your corporation or LLC, but you need to make sure they are reputable and not online scams.

If you start a corporation or LLC you will need a tax expert that specializes in small business and good accounting software. The government will send you an Employer Identification Number. This is the company’s unique id number, think of it like your social security number. This number needs to be used on all documents pertaining to the company, as well as all tax forms.

All parts of the business must to be kept separate from your personal life. You need different bank accounts, different phone numbers, and different credit cards. Next to making a profit this will be your biggest and most important challenge. If you mix funds or you are sloppy with book keeping, the corporate veil can be pierced and that means you can become personally liable for the company and its actions.

I recommend a good CPA and a lawyer. These can be found online within your area and are well worth the upfront money. After you are set up it is possible to do all the taxes and accounting yourself with powerful accounting software, but this is time consuming and may not be worth it to some. Remember starting a new business can be fun and rewarding; just stick to the rules and laws.

Small Business Information You Need to Know

Are you thinking about starting up a small business sometime in the near future? There are a few things that you will want to know before you open your doors for the customers to come in. If you try to start a business large or small without first having all of the facts about that business you may not be as successful as you hoped you would be. You will want to take the time to make sure that everything is in order before you put your small business plan into effect.

One of the first things that you will want to make sure that you have is a small business license. Every business large or small has to have a license to operate in the county that they are located in. You will have to go to the court house in your county and inquire about purchasing a business license before you can actually call yourself a business. You will have to give them your business name and pay the required fee.

Next, you will want to make sure that you have a small business bank account so that you can keep all of your business finances in order. You do not want to get your business revenue mixed up with the grocery money from your personal account and it can be a big mess to straighten everything out if you go too long without establishing a separate account for your small business. It will also be helpful for you to start building a business relationship with the people at your bank so that you will have an easier time getting approved for loans when you need them.

Another thing that you will want to know about before you start your business is online marketing. By taking the time to sit down and learn some basic information about internet marketing you will be able to reach out to customers from across the world that want to do business with you. These are customers that you would not otherwise have the opportunity to do business with and are ones that will be very valuable to you once you start.

There is several other information that you will want to know about a small business before you start one up. It is not as easy and glamorous as most people try to make it out to be. You will need to do a lot of planning and make sure that you have everything that you need in order to be successful. You can make it if you have everything organized before you open your doors.

Business Hubs: Your Business Information Center

Those who want to harness the power of the Internet for growing their business; a business hub is where they will find a variety of resources as well as marketing tips and strategies. The Internet has changed the way businesses operate and reach customers. Businesses have to match their strategies to this new arena. Most traditional marketing methods will not work online, so they have to learn new marketing strategies for increasing their online presence.

There are plenty of Internet marketing methods-some are niche-specific, while some work across different industries. Marketing online is relatively more affordable than traditional advertising. When approached the right way, they can give your company the boost it needs. But where is the best place to go to learn those marketing strategies?

A business hub, which also known as web hub or vertical portal, is a website dedicated to providing content, information, and services to businesses within a particular industry such as health care and IT. While some serve as meeting ground for businesses and customers, it tends to focus more on the needs of businesses than industry customers.

As a business-to-business website, a business hub can serve as your gateway to essential information on how to grow your business. They typically cover information specific to a niche, but they may also include general marketing information (e.g. Facebook marketing, article marketing). Some also offer industry analysis or business design. Here are some of the most common business marketing strategies covered by business hubs.

  • Article marketing.Article marketing is a method of promoting a business or company by publishing keyword-optimized articles in web directories. When properly done, it is an effective tool for reaching broad audience and showing them your expertise.
  • Cloud Marketing.This is the collection of different Internet-based marketing services, allowing marketing functions to operate more efficient and effectively.
  • Consumer Generated Marketing.This is a marketing method that directly involves participation of audience in marketing products or other activities of business.
  • Facebook Marketing.This looks at Facebook as a platform for marketing one’s business and reaching audience.

Summary of Benefits Business hubs share 3 common aspects:

  1. Marketing resource.Business hubs are great source of information on how a company or business can thrive online. It gives you quick access to different marketing strategies and other relevant information-tools you need to stand ahead of the pack.
  2. Niche-specific information resource.Because it caters to niche markets, you don’t have to sort through millions of web pages to find the information most relevant to your industry. If you’re new to online business and don’t know where to start or what direction to take next, you may find the answers in a business hub.
  3. It serves as a directory of different businesses in the industry. Most keep a listing of companies offering industry-specific services. All in all, business hubs function as a reference center for people who want the ins and outs of an industry in particular and the world of Internet-based business in general.