Thursday, March 5, 2009

How to Maximize Small Business Profits

Running a Small Business can be hardwork and source of big tensions if there are cost overruns. All your effort will go waste if your Small Business does not run efficiently. The whole idea behind keeping your operation small is because you expect to keep good tabs on cash flow, especially that which goes out. 

Small cash out flows add up and create a big stream of loss. Most Small Businesses go into loss because of such small streams which are overlooked. Such losses come in the form of excess bills, excessive expenditure on stationery, phone bills, business trips, subscriptions and membership fees.

The first step involves recognizing these streams. Its going to be difficult to keep tab if you are balancing your sheets manually. There is a lot of scope of error. Its better to opt for automating this process using s software like Quicken from Intuit technologies. 

There are several benefits of using softwares like Quicken. It does not cost much and installation is easy. Once you have update your data into Quicken, it automatically does a profit/loss analysis and even calculates payable tax based on current tax rates. Quicken keeps track of all your bills. You can even connect it to your bank account and credit cards and take into account the cash flow through them while calculating your earnings. 

Using software like Quicken Home and Business goes a long way in reducing your small cash losses and gives you a perpective which will help you plug them. 

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