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Do you know enough to be dangerous?

You have a fantastic idea, product, clients, etc., you are busy doing the “critical inch” of what makes your business profitable, and you assume or blindly hope that the accounting will “fall into place” or “just happen.” The intensity and excitement of starting a new venture can be and usually is all consuming with a to-do list that is longer than the hours in a day. Does this sound familiar?

One of the major no-no’s in starting a new business is mingling personal and business funds.  Most new business owners have no choice but to use personal funds at the creation of their business.  This is understandable, however once an entity is registered, it is vital to open a business bank account and set up your accounting software.  Comingling funds can create huge headaches from not know the exact amount of money invested, spent on expenses, or accurate records for tax time.  If partners are involved, the headaches turn to migraines and undue stress is put on the budding enterprise.   If possible, involve professionals when starting a business and in maintaining financial records.  Business owners don’t start businesses so that they can be stuck tracking receipts, and rarely do they have the time to maintain perfect accounting records so they take short cuts or fall behind.  Don’t fall into this accounting pitfall, get help and get back to doing what you love. 

“You only cry once when you pay for quality.” – English Proverb

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