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Published:
July 30, 2007

Small Business Financial Management Kit For Dummies

Overview

If you’re a small business owner, managing the financial affairs of your business can seem like a daunting task—and it’s one that far too many people muddle through rather than seek help. Now, there’s a tool-packed guide designed to help you manage your finances and run your business successfully!

Small Business Financial Management Kit For Dummies explains step by step how to handle all your financial affairs, from preparing financial statements and managing cash flow to streamlining the accounting process, requesting bank loans, increasing profits, and much more. The bonus CD-ROM features handy reproducible forms, checklists, and templates—from a monthly expense summary to a cash flow statement—and provides how-to guidance that removes the guesswork in using each tool. You’ll discover

how to:

  • Plan a budget and forecast
  • Streamline the accounting process
  • Improve your profit and cash flow
  • Make better decisions with a profit model
  • Raise capital and request loans
  • Invest company money wisely
  • Keep your business solvent
  • Choose your legal entity for income tax
  • Avoid common management pitfalls
  • Put a market value on your business

Complete with ten rules for small business survival and a financial glossary, Small Business Financial Management Kit For Dummies is the fun and easy way® to get your finances in order, perk up your profits, and thrive long term!

Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.

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About The Author

Tage C. Tracy is principal owner of TMK & Associates, an accounting, financial,and strategic business planning consulting firm.

John A. Tracy is Professor of Accounting at the University of Colorado in Boulder and the author of Accounting For Dummies.

Sample Chapters

small business financial management kit for dummies

CHEAT SHEET

Managing the finances of a small business is a multi-layered task. You need to become familiar with standard financial documents, pay attention to profits, and make the most of the business’s assets. And you always have to be thinking and planning ahead. You have some work to do, get to it!Important financial documents for your small businessManaging the finances of your small business can be a challenge.

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Articles from
the book

When implementing a new business concept, only one definition captures the real essence of capital: "It takes money to make money." From the aspiring entrepreneur designing new software in a home office to the executive of a multinational corporation looking to expand foreign distribution channels, launching any new business concept requires capital, or money, as a basis to execute the business plan.
The assets of your small business drive your financial picture to a large extent, so you need to know how to manage those assets to maximize their use to you. Use the tips in the following list to help put your assets to work for your business: Determine the sizes of assets you need to support the level of your annual sales revenue.
As the owner or manager of a small business, of course you’re very busy, but it pays to step back and plan for your financial future. Take the time to forecast, plan, and budget. Have your Controller (chief accountant) prepare the following pro forma (according to plan) financial statements: Budgeted P&L statement for the coming year.
Managing the finances of your small business can be a challenge. To survive and thrive, you must earn profit consistently, generate cash flow from profit, and control your financial condition. You need a separate financial statement to highlight each aspect: The P&L Statement (also called the Income, or Earnings Statement) summarizes revenue and expenses and reports your resulting profit or loss — that’s what the P and L stand for.
Your small business is designed to make a profit — even if you’re not making one yet. Managing the financial aspects of profit requires special skills and powers of recognition. The following list offers tips on what to pay attention to: Cash flow accounting doesn’t tell you profit for the period, and accrual-basis profit accounting doesn’t tell you cash flow for the period.
Managing the finances of a small business is a multi-layered task. You need to become familiar with standard financial documents, pay attention to profits, and make the most of the business’s assets. And you always have to be thinking and planning ahead. You have some work to do, get to it!Important financial documents for your small businessManaging the finances of your small business can be a challenge.
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Frequently Asked Questions

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