Salt Lake City Bookkeeping Blog

As one of the most common exit strategies, there are many reasons why successful business owners sell their companies: to retire, to pursue new opportunities, to avoid burnout – even to dodge tax changes. With a recently booming sales market, if you’ve been thinking about selling, now may be the time to get the most from your exit.

Filing your business taxes correctly and on time is a must. But some entrepreneurs are ready to move beyond these basics and take a more proactive approach to next year’s return. Whether that means becoming more knowledgeable about your individual tax situation, or adopting a new planning strategy, it’s never too soon to get started.

Your company’s financial reports provide important clues about the monetary health of your business. Some of these clues manifest as financial warning signs. Becoming more familiar with your company’s financial statements not only helps you recognize many red flags, it lets you use them to make decisions that will divert trouble down the road. Here are 5 common financial warning signs to watch out for.

There are a handful of important functions that drive the average small business, including strategy, marketing, finance, and operations. Your success depends on creating and growing a company with a thorough understanding of all of these elements. But today we’ll focus on the 4 key areas of operations you’ll want to pay close attention to.

What you should be charging for your product or service is a question that haunts many an entrepreneur. And while “driving sales” is frequently cited as the number one marketing goal of small business owners, many still set their prices without a long-term strategy for achieving that goal.

If your small business is showing the signs of long-term success, chances are good a solid plan was involved. But no company can afford to become complacent about its accomplishments. Your business is a dynamic entity, and your strategy must continually evolve to reflect that. So, when’s the last time you stopped to breathe new life into your business plan?

For accounting purposes, your business must record a journal transaction each time a financial event like a customer sale or purchase of supplies occurs. But unless your company qualifies for and uses a cash accounting bookkeeping system, adjusting entries will also be necessary to keep your accounting records accurate.

Your business’s financial statements are vital for a number of reasons. Not only do they form the basis of accurate tax reporting, they make it possible to get approval for loans, attract business investors, and even sell your company when the time is right. But your financial reports are also an important diagnostic tool that can give you the power to measure and influence your organization’s performance. Isn’t it time you learned how to read them?

Entrepreneurs often take it for granted that the financing they need to get and keep their ventures afloat will come directly from the revenues they generate. But in many cases, your income won’t be enough to keep pace with what’s needed to support your operations. Some small businesses turn to debt or equity capital as a source of financial help. So let’s take a brief look at whether it might be better to pay with cash interest or with company stock for the funds that can help your business succeed.

Whether you’re new to business, new to bookkeeping, or just want a refresher in strategic accounting, there’s a lot to be said for exploring the bookkeeping tactics most likely to enhance your company’s performance.