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New business owners have a lot to learn, but effective business accounting must remain near the top of the list. Experts offer some basic tips to avoid mistakes. From Day One, document every business transaction, keeping a record of all source documents and analyzing them to make sure you have records for business expenses, cash flow, cash receipts and income. Decide on your accounting method, whether you’re using a cash basis in which you record the transactions only after customers make purchase, or on an accrual basis, in which you record income as you make sales and record costs as you incur them. Decide if you need an accountant, or if you’ll do it yourself with.
Accounting and bookkeeping are the cornerstones of small business success, and this Home Business Magazine article will help you get started.
ICSC champions small and emerging businesses in getting from business plan to brick-and-mortar.
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