We're starting a series here at Work From Home Momma on Business Basics. Several times a week we will focus on providing an overview of some business basics for the self-employed and small business owner.
I was inspired to start this series because I know that a lot of us who work at home started our business based on a particular skill. Often that skill is not what would traditionally be considered a business skillset.
You can help with this series by suggesting additional topics that you would like to see covered.
Just leave a comment or send me an e-mail.
Also, feel free to comment on your own experience with any of the topics.
To start the series I'm going to talk about a few basic areas of accounting
What Is Accounting?
Wikipedia defines modern accounting as:
"the process of identifying, measuring and communicating economic information so a user of the information may make informed economic judgments and decisions based on it." 
Three Accounting/Bookkeeping Tips For Small Business Owners
There are three important practices that many small business owners fail to consider. Observing these practices will help you as your business grows.
- Keep your business accounts and your personal accounts separate - Many small business owners fail to distinguish their business books from their personal checkbook. As their business grows, the line between the two blurs.
- Track all sources of income - It's very important to keep a record of all income that your business receives, regardless of the method of pay. This is especially important when tax time comes.
- Track all business-related expenses - That package of paper that you bought at the office supply store may seem too small to worry about, but tracking your business expenses is a necessary part of doing business. Expenses can spiral out-of-control if they are not tracked.
Want More? Check Out These Resources
(Note: This series is not intended to provide specific professional advice on the business topics covered. If you feel you need additional help in any particular area for your own business, then you may need to consult a professional.)
Any time I start to get lazy about tracking my business expenses, I just remember that if I keep track of them all, I get to claim them all on my taxes.
Posted by: Frugal Urbanite | May 13, 2008 9:40 AM | Permalink to Comment