February 21, 2010 
This entry was posted on Sunday, February 21st, 2010 at 9:09 pm and is filed under Accounting, Accounts Payable, Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
According to the Small Business Administration a business is considered a small business by the number of employee’s it has or in some cases the gross income. There is not one answer for all businesses, it differs depending on the market they are in.
Small businesses are the backbone of the US economy says the SBA. Two out of three new jobs come from small businesses and half of the technological innovations. Many small business will not make it past the 2nd year mostly due to poor planning. It is important to have your accounting plan in place with accounts receivable and accounts payable reconciliation knowledge.
The best small business advice is to have at least one year’s worth of income before you start. This means that if it takes $100,000 to start the business and you project that the business can make $100,000 the first year, then you need $200,000 before you start. Don’t start off on the wrong foot, make your business successful.