 |
 |
 |
 |
 |
 |
 |
 |
 |
1) Make sure your choice of business entity is the right one for your type of business (Starting Your Business)
2) Maximize contributions to retirement accounts such as SEP IRAS, Simple plans, Defined benefit plans, etc
3) Take advantage of fringe benefits that your choice of business entity might be entitled to. Did you implement an "Accountable Plan" for expenses
4) Follow the "Economic entity principal" as much as possible. Your business is separate from your personal finances.
5) Make sure you implement internal controls over your business structure
6) Make sure everything that you do and every decision you make contributes some type of value to the business or don't do it
7) Never borrow from the trust fund taxes that are due to be paid to the government to pay other creditors. You will become personally liable.
8) If you are paying independent contractors, make sure they are classified correctly, and don't rely on the advice of the PEO
9) Use additional entities to protect from losses and utilize special allocations affecting tax basis as much as possible
10) Study your cash flows, always include a statement of cash flows when having financial statements prepared
11) Know your debt ratios, know your industry specific statistical financial ratios and make policy changes to adjust them often
12) Reduce your inventory as much as possible, use suppliers with large inventories
13) Make sure you are using the correct methods of accounting for your type of industry
14) Familiarize yourself with the substantiation requirements for deducting business expenses such as mileage and meals and entertainment.