What are the things needed for a business plan?
You have to prepare a business plan when starting a business that will show your goals. It has to include the procedure for sales and expenses, like a road map for you to follow.
Things you need to take into account when preparing a business plan.
- Marketing Plan
- Premises
- Equipment
- Training
- Legal Matters
- Insurance
- Finance
- Market research
- Customers
- Operational plan
- Management and Organisation
- List of directors or partners.
- Financial plan
Accounting work starts with Cash Book and the procedure to use it.
If you are running a small business and want to use the manual method, enter all the transactions in a cashbook, or use Excel spreadsheets. A cashbook has two sections, one when you make payments, called debit, and one when you receive credit. When you receive the bank statements at the end of the month, you will check with your cashbook and reconcile the accounts with bank statements, called bank reconciliation. That means the balance in the cashbook should be the same as the month-end balance in the bank statement if you are using cash to make payments and receive some money; all that is recorded separately and maintained in a petty cash book. Better to update your cashbook daily and balance. You can do it with the bank statements at the end of the month. This will be a better method as it will have more control over finances than waiting until you receive the bank statements and then do the reconciliation.
What are the things needed for a business plan?
Methods to preserve finance records.
1. Firstly, separate your personal and financial records. Do not mix up the bank debit and credit cards that help to save time and money. Then you will not need help separating these records, especially for the tax filing or the tax inspection.
2. Transfer the surplus money to a particular account could be a savings account with easy accessibility in an emergency.
3. Maintain the files for all the sales invoices and purchase receipts, as you will need to buy equipment, computer, and software. Creating website expenses, hosting charges, and much more supports your business, as you will have to account for all these when the time is up for tax filing.
I am selecting accounting methods for small businesses.
As a new business, the choice of accounting method has to decide for you to maintain accounts without any hassle during tax filing.
A complete, thoughtful business plan is one of the most valuable tools in helping you reach your long-term goals. It gives your business direction, defines your objectives, maps out strategies to achieve your goals, and allows you to manage possible bumps in the road.
A business plan is an essential strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs to focus on the specific steps necessary for them to make business ideas succeed. But it also helps them to achieve both their short-term and long-term objectives.
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