Architects and Home Builders: Organize your Business Finances - Sleep Soundly at Night!
My home-design-builder client drove up in a huge pickup truck, cell phone in one hand, blue prints in the other. Frazzled and discombobulated he said "Am I late?"
I got a quick look inside his truck. Papers were strewn everywhere. Receipts, credit card bills, and other byproducts of owning a successful yet unorganized business.
"I can't seem to find anything and my CPA says I need to get my act together."
I said "This keeps coming up. When do you want to do something about it?"
If you're an architect, home builder, or home designer, you are most likely in a similar predicament. You're good at what you do, but not so good at running a business. This article will at help you organize your business finances so that your CPA will be happy and you can sleep soundly at night.
Is there a better way to organize your business finances other than throwing everything into your pickup truck? You bet. Follow the steps below to create a simple, yet functional way to organize your business and live a more carefree life.
Step 1 – Get a three ring Binder - A 2” or 3” binder would be adequate for most architects or home builders. You'll be using one binder for each year you are in business going forward. All details pertaining to your business will be in one place so that you won't have to go searching for anything. On the cover type the name of your business and the year.
Step 2 – Purchase a Three Hole Punch and an accordion folder – You'll be putting all receipts in your accordion folder and then placing them in the three ring binder every day when you get back to the office. All papers and correspondence will fit neatly into your binder.
Step 3 - Get a Zipper Compartment – Purchase a plastic zipper compartment from an office supply store to hold small receipts.
Step 4 – Hire an Accountant and Purchase Accounting Software – Get yourself accounting software like QuickBooks or Microsoft Small Business so that you can track your finances. Professional architects and home designers track their profits and losses using the right tools and analyze their financials regularly. Start tracking sales and expenses at the beginning of the year for best results.
Step 5 – THE SYSTEM: Arrange paperwork in your binder according to month. Keep all receipts, credit card statements, bank statements, and sales tax reports (make sure your accountant reconciles these monthly). At the end of each month, run a Profit and Loss Statement and a Balance Sheet (collectively known as Financial Statements). Use the Financials as separators for each month. File small receipts that can’t be hole-punched in the zipper compartment at the back of your binder.
Step 6 – CLOSE IT OUT – At the end of each year, reconcile your accounts, print your annual Financial Statements, and close out your year. Put the binder away and start a new one for the New Year. Give your accountant or CPA a copy of your QuickBooks file to prepare your income tax return.
Tips:
- Only handle receipts one time. Review them. Record them in your software program. File them in your binder.
- Get a business credit card for your company. Any outstanding balance will not appear on your personal credit history. This way you can maintain separate business and personal expenses. If you ever need to carry a balance, you can easily determine the tax-deductible interest.
- Consult with your accountant or CPA regarding what is and is not tax deductible.
- Make an appointment with yourself one to two hours a week to do your business finance organization. Hire an accountant to do the detailed work, but never hand it off to them – always review and ask questions. Never lose control of your business finances.
This system is one way to organize your architect or home builder business finances. If you would like an easy way to to organize your business for financial success, you may want to consider writing a Business Plan.
Do you want to earn more money?
Purchase the Two Page Mini Business Plan™ today and discover the secrets to more income from the sample architect Business Plan provided.
You'll get everything you need to write your mini business plan, tons of marketing tools, and an automated E-Course to motivate you to complete your plan. All this for the ridiculously low price of only $49.00. All products and bonuses are available for immediate download!
Click here to review everything you get.
There's no risk at all as I offer a money back guarantee. If you're not satisfied for any reason, just ask for a refund within three months of purchase.
Start on the road to a more ideal life today!
©Copyright 2009-2010 - Suzanne Muusers
About the author
Suzanne Muusers is a Business Coach based in Scottsdale, Arizona. She is a credentialed member of the International Coach Federation and has owned or managed a business every year since 1981. She is the creator of The Two Page Mini Business Plan™, The Secret to More Business Income. Visit her site: http://www.prosperitycoaching.biz
Suzanne Muusers
ICF-Credentialed
Business Coach
Prosperity Coaching LLC
Copyright© 2009-2010 |Suzanne Muusers | All Rights Reserved|
Do not copy content from the page. Plagiarism will be detected by Copyscape
Prosperity Coaching LLC, Business Coaching for EntrepreneursContact Us: Call 480-922-1723
Business Plan for Life Coach
Business Plan for Business Coach
Business Plan for Life Coach
Business Plan for General Contractor
Business Plan for Mortgage Broker
Business Plan for Financial Advisors
The Prosperous Entrepreneur Blog - Marketing & Success Strategies
 |
 |