What are your essential needs as a small business owner? I’ve been thinking about this as it relates to your financial records. Here is what I think.

You need financial records that will enable you or your accountant to:

1.    Prepare your income tax returns

2.    Prepare your Payroll reports (Forms 940, 941, OQ, 132, UITR, DR1094, etc.)

Here is where many small business owners stop! Their records are designed only to provide the minimum that the government requires.

But there is another level of need that is not required, but more important. You need financial records that will enable you to manage your business – that is to make good decisions. These records should enable you to do three things:

1.    VISION: WHAT is your purpose? WHY are you in business? HOW are you going to do it?

2.    PLAN: What are your OPTIONS and PRIORITIES? What is the TIMETABLE for when you should take action?

3.    EXAMINE: What have you BEEN DOING? What are you doing NOW? What does it MEAN? And what should you CHANGE? – This brings you back to your VISION – refining it.