By Susan Guillory –
You know that good recordkeeping is part of running a small business, but you aren’t sure how long to keep business records and documents. The last thing you want to do is shred some business documents that you later need… but at the same time, you don’t want to hang on to a lot of paper unnecessarily.
In this article, we look at different types of business records, why it’s important to hang on to some of them longer, and what the timeframe is for keeping them.
What are Business Records?
“Business records” is a broad term that encompasses any documents, invoices, or receipts that are involved in running a business. Let’s look at different categories of business records.
There are a variety of financial records and reports that you use in bookkeeping, including: (more…)
By Gerri Detweiler –
If your business received an Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) loan, you may have determined it isn’t a good fit for your small business for any number of reasons:
• You just wanted the EIDL grant and not an EIDL loan
• You didn’t understand the loan terms when you applied
• You can’t use the EIDL funds or PPP funds the way you hoped
• You don’t think most of your PPP loan will be eligible for forgiveness
• You aren’t sure your business will survive to be able to repay a loan
By Gerri Detweiler –
Credit scores are often seen as the number one obstacle that prevent small businesses from getting financing. But disorganized financials may be equally to blame.
In today’s challenging economic environment in particular, lenders want to make sure your business is viable and will be able to repay the debt. Organized and up to date finances are essential if you want to increase your chances of getting approved.
1. Create an Easy Filing System
“We think ignorance is bliss, but really is it filled with headaches and fear,” says Belinda Rosenblum, CPA, money strategist for business owners, and founder of OwnYourMoney.com. “Avoiding your paperwork and bills — or even a huge ‘to file pile’ — is a costly recipe for disaster,” she says. “Not opening bills often causes missed deadlines or even late fees. Opening them but then letting them pile up without filing anything can cause you to feel disorganized and out of control.” (more…)
By Ty Kiisel –
Over the nearly 40 years I’ve either owned or otherwise worked in a small business, I’ve observed that even businesses that might not be considered “seasonal” in the traditional sense ebb and flow over the course of the year, creating times when capital becomes tight and the cash flow pinch can cause an otherwise healthy business to struggle. In today’s world, small business budgeting and borrowing are more important than ever. I use these two words together intentionally, because I believe there is a synergy there for business owners who take a strategic approach to capitalizing their businesses.
A reactionary approach to a small business’ need for capital can satisfy a short-term need or meet an unanticipated shortfall, but it might not help the business grow. We see evidence of this in the failure rate of small businesses in our country. Of the 30 or so million small businesses in the United States, those that survive the first few years are far too few, and only 40% of small businesses are even profitable. What’s more, the most common reason for business failure is a lack of adequate cash. In fact, poor cash flow causes 84% of the business failures in the US. (more…)
By Intuit –
To help small businesses and self-employed workers stay afloat due to the COVID-19 outbreak, the IRS created new tax credits, including:
• Employee Retention Credit
• Paid Sick Leave Credit
• Paid Family and Medical Leave Credit
But carving out extra time to figure out which tax credit options you may qualify for — while adapting your business to COVID-19 — can be an overwhelming and time-consuming experience. Federal financial relief programs often have rules, provisions, and exceptions that are hard to understand at a glance. (more…)