Are you a contractor, builder, cabbie, realtor, mortgage broker, beautician, or barber?  Do you run a restaurant or professional practice such as a dental, law or medical office.  Then, you are an entrepreneur.  That’s a fancy word, and, you are working for  yourself, acting as your own boss, and running the show. But, you also have the financial responsibility for keeping your business’ finances in order.  If you are tangled up in a money mess, you can still make changes, and try to get a handle on your problems.

These tactics can help you when money is tight, if your business is sued, and to manage your business for the long term.  We can also help you protect your business and personal assets.

I previously wrote a blog article about common money mistakes that business owners make.  Take a look also at Entrepreneur Magazine’s top 4 money mistakes Entrepreneurs make.   It’s easy to get lost in the day-to-day grind of running a business, but it is equally important to keep track of the “books” and balance sheets.  That’s not nearly as interesting as the work you do, that you are really passionate about. But, if you don’t spend time keeping your books, you might not be able to continue your business for long. Or, if you don’t keep track, you’ll  end up  in some serious debt.

Entrepreneur magazine came up with 4 simple rules:

1. Prepare your general ledger. Keep your books.  That way you’ll know how much you are earning each month,  AND, most importantly, how much you are spending.
2. Keep Business Business.  Keep a separate bank account just  for your business; don’t mix everything up!  It’s ok to transfer money. But just use the business account for business expenses.  It’ll be a lot easier to keep track of how your business is doing!  And, it’ll help you get the right information to your accountant.  (Hire an accountant, it’ll make  your life a lot easier!
3. Report all revenues.  Yes, that’s right, all revenues. You’ll have a better handle  on everything; you can write off all your expenses too!  And, you’ll be doing the legal, correct thin
4. Keep records and receipts.  Just keep a folder. Put the receipts in, and, it’ll be easiest if you use that separate bank account to pay the business bills.  Use a credit card; pay the bill each month in full; or, if you don’t feel that disciplined, use a debit card.

All of these tips are so important for business  owners.  And, it’s not too late to start doing these things. Just set a date to start.  New year,  new month, whatever.  You’ll feel better, and have more control over the life of your business, and your life.

Call us if you have financial questions for you or your business.  We can help.

Daniel J Winter

BankruptcyLawChicago.com

djw@DWinterLaw.com

312-789-9999

Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois