Managing Personal Finance And Business Finance Separately Lead To Hassle Free Life

Written by buzz. Posted in Business

Managing Personal Finance And Business Finance Separately Lead To Hassle Free Life

Introduction:

Managing finance seem easier when you start a business on your own and have a single account to keep track of your personal and business finances. Initially you might be tempted to maintain a single account since it may save lot of time and you can focus more on business management and deliverables.  I can hear you saying, “After all, these are my accounts and I own my business – So why take the trouble of creating and maintaining different accounts?”. Well, this article is written just for you. After reading this article fully, you will understand how you can have a hassle free life by managing personal finance and business finance separately.

Hassle free record keeping and tax filing:

Imagine separating your personal and business income and expenses at the end of April, when you need to focus more on expanding your business. If something goes wrong with the accounts, and you provide inaccurate information to your tax officials, you might end up facing serious consequences. Foremost benefit from managing personal finance and business finance separately is having a clear picture of your income and expenses. You can also obtain the best possible tax benefits.

Business loans:

If you need a business loan to expand your business or to start a new one, you have to show your finances to banks or other financial agencies. Chances of your loan rejection is higher when you have accounts mingling in your finances. Officials may consider this a disorganized business, or you are not interested enough conducting business. You may want to avoid facing such a situation by managing your personal finance and business separately, especially in this period when the economy is down and banks are considering strict rules and regulations for approving loans.

Credit card benefits:

If you are a small business owner working from your own home, chances are higher for you to manage your personal and business expenses by using a single credit card. When you file your taxes, officials might think that an expense that was shown as personal could possibly have been for business purposes. For example, buying computers, printers and software for your personal use can be considered as office expenses. It is advised to manage personal finance and business finance separately by using different credit cards to make purchases to avoid problems with the IRS.

Documentation and business growth:

When you have two separate accounts for managing your business finance and personal finance separately, documentation becomes easier. It is very important you document every transaction that you make. This habit not only saves you from tax filing hassles, but also helps you analyze your profit – loss, income-expense ratio to make necessary changes / improvements to your business.

Conclusion:

If you feel it is tough to manage personal finance and business finance separately, employing a bookkeeper or an auditor is advisable. There are Finance Management software available online or as an open source tools. You can download open source finance software to manage your finances. Be careful while using online portals, and ensure you have enough security on your account information.

Global Economical Turmoil Affects Small Business Loan Approvals

Written by buzz. Posted in Business

Global Economic Turmoil and Loan Approvals

Introduction:

Are you are on the verge of starting a new business or working on expanding your existing business? Since the global economical turmoil affected small business loan approvals, it is very important to understand the technicalities before applying for loans. This article will walk you through the significant factors for managing and getting your small business loans.

Small business bank loan:

A bank is the first source that crosses your mind when you start thinking about small business loans. With the current economic situation, banks are revising their rules and regulations for small business loan approvals. The following guidelines may help you understand how you can get a small business loan approved from a bank.

  • Have a strong project plan that highlights your small business strength
  • Learn a professional method to present your project plan and its strengths so that it gives confidence to bank managers
  • Establish a relationship with your bank by meeting officials in person, speaking to them honestly, explaining your goals, and business trend (past, present and future)
  • Contact as many banks as possible and understand their policy, small business loan rates and loan programs
  • Identify what is expected from you and anticipate the bank’s concerns
  • Be flexible on your request concerning money and other terms and conditions

Government small business loans:

There are government agencies, if you meet the criteria set by them, that can help to get your small business loan approvals.

  • The Small Business administration(SBA) is an independent agency of the federal government. They counsel and guide small business entrepreneurs in various business disciplines including small business loans and finances.
  • Such Government agencies, generally, coordinate with banks and guarantee them on behalf of a small business owner.
  • They promise banks to pay back a portion of the money, if the owner fails to do so. To become eligible, your business must meet the standard as specified and you are required to sign a contract.

Small business loans for women:

If you are a women entrepreneur, you will be surprised to find the options that are available to obtain small business loan approvals.

  • Federal government agencies like SBA, and other fund-raising organizations such as count-me-in, the women’s funding network, can guide through the special options available for women’s small business loans.
  • Financial organizations like Wells Fargo, and Accion USA advise women entrepreneurs on various small business loan options to take care of their business finances.
  • Low interest small business loans are established according to state policies for minority women with low incomes or no monetary support.
  • Disabled loans can be availed for women entrepreneurs with physical disabilities.

Conclusion:

Apart from these, there may be other industries like nonprofit organizations that can help in  managing loans. Ensure that you provide necessary information about your business and project plan as requested in the checklist. Doing it right at the first time will save you time, money and get your small business loan approvals.

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