B2K Advisory

Tip #1: Keep it Separated

Too many business owners mix and mingle their personal and professional finances. Even if you are a sole proprietor keep you business business, and your personal personal. Set up separate checking accounts and if you need some funds from your small business, write yourself a check, or make a cash withdrawal. This will help come tax time when you need to separate business expenses. Even though the form of business is a path-through, you should still make sure a separation takes place. This will make expense tracking and budgeting much easier on you.

Tip #2: Keep Up to Date

Falling behind on your bookkeeping will only make matters worse. Set a specific time aside to deal primarily with record keeping. This will make tax time easier and quicker for you or your accountant. If you simply do not have the time necessary to complete the task, then look at outsourcing the work, or bringing in a part-time bookkeeper. This necessary function of business is so crucial to the success of the business that if cannot be put off and forgotten.

Public entities should select auditors only after considering five basic steps for an effective audit procurement process, as follows:

Step 1: Planning (determining what needs to be done and when).

Step 2: Communicating Audit Requirements and Soliciting Proposals (writing a clear and direct solicitation document and disseminating it widely).

Step 3: Selecting a Qualified Auditor (authorizing a committee of knowledgeable persons to evaluate the ability of prospective auditors to effectively carry out the audit).

Step 4: Written the Agreement: Documenting Expectations (documenting the expectations of both the entity and the auditor).

Step 5: Monitoring the Audit: Ensuring a Quality Audit (periodically reviewing the progress of that performance).