These are some of the most common questions you might have surrounding your business. If you don’t find your question below, leave it in the comments.
Most commonly asked questions about business
Should I start my own business?
Before you start your own business the most important thing to consider first is how will you provide value.
If you think you want to start your own business it will start with the value your business brings. If you can’t sell value, you won’t have customers, and ultimately a business.
Next is the time, owning a business is a commitment that requires your full attention. If it’s a single owned business then maybe putting in the work is exactly what you’re in it for. Otherwise, you may want to hire professionals that can save you time.
We cover the pros of having an accounting or bookkeeping team for your business in this article.
Lastly, why are you starting a business? Do you want to build financial security or are you trying to push yourself beyond your limits? Make a list of things motivating you, and then answer the question for yourself.
I got a letter from the county office, what do I do?
The county you’re incorporated in will send you notices related to your business. It’s important that you open these timely and address any instructions given. If you need assistance with an official document you’ve received from the County or IRS please let us know.
Do I need a business plan?
Technically no, a business plan is only needed to secure funding. If you will not need outside funding, you may or may not benefit from one. Research doesn’t indicate that it will help or hinder your business. If you need help creating one, our office can help you.
Is starting a business expensive?
No, technically you can start a business with zero capital. The moment you decide to start serving others, you’re on your way to a business. The cost for incorporating a business varies from state to state. However, most websites have hidden costs and advisor fees that add up.
We give you transparency when incorporating a business so you know exactly what you’re paying for.
What is the best business structure for me?
The best business structure is one that meets your needs. This article will help you understand the different structures but an accountant can help you determine which business structure will benefit you most. Learn more here >>
What type of records should be kept for my business?
The best way to determine which records to keep for
your business is to create a system. The way you structure your records
will become the foundation for your tax statements and returns.
We value our bookkeeping standards as always being audit ready and so should you. Your record keeping should be meticulous. A professional accountant can help you streamline your system so it specifically meets your needs.
At a minimum your records should include: a basic journal used to record the business transactions, accounts payable, accounts receivable, payroll and any assets/liabilities that the company owns.
If you’re doing it yourself, then you’re looking at the basic bookkeeping. These are the common differences between accounting and bookkeeping.
A professional accountant can help you with more advanced reports such as an income statement. Most commonly known as a profit & loss report, it’s a valuable tool for your business.
Why do most businesses fail?
The simple answer to why most businesses fail is because of a lack of funds, also known as cash flow. Not handling the money a business generates is a problem when cash flow is an integral part to sustaining your business.
At the end of the day, if a business doesn’t have the money for continued operations it will fail. However, the right team can turn any business around. This article will help you avoid some of the things most businesses fail to do.
What can I do to fix my cash flow problems?
To fix your cash flow problems usually, you need multiple solutions. As the owner you should focus on:
Building an emergency fund.
Manage your account receivables.
Manage your account payables.
This article on cash flow will guide you through each problem and more tips.
How do you develop a budget?
If you’re developing a personal budget, read our article where Rosa breaks down the major functions in a budget. If you need help with your business budget, we can help you structure something that meets your needs.
How can I benefit from a monthly projection?
You can benefit from a monthly projection in a few ways.
A monthly business projection can assist you in identifying any potential cash flow problems.
At Anguiano Consulting we put you on a visual call so we can walk you through your numbers.
We have found that visually it is always easier to understand when talking about numbers.
A monthly projection can also help you make current decisions. It shows you the flow of income and expenses.
Schedule a projection with us today.
How should I pay my employees?
If you have employees then you should also have payroll set up. If you don’t we can assist you so that you’re paying your employees legally and per the labor laws. Paying your employees is not optional.
An employee contacted me accusing me of not paying them, what do I do?
You can usually contact your payroll department in this case. Sometimes hours are not logged properly from your representatives and it can cause payroll issues down the road. It’s always advised to have your employees double check their hours and sign off on them.
Your payroll provider will assist you with calculating the appropriate taxes and withholdings for any older payments.
What type of reports should I produce for my business?
At the minimum you should be producing a profit report or income statement to review your financials within your reporting period. These are the benefits a profit report will give your business. Depending on the type of industry you’re in, you will also benefit from a cash flow statement.
What do I do if I was Scammed?
If you believe you were scammed, report any fraud to your banking institution, immediately. Then contact any organization where your information may have been compromised. You’ll also want to change your contact information. If you’re wondering how to avoid scams, you can read our article here.
What are the benefits of hiring a personal financial coach?
A personal financial coach can help show you the benefits in identifying your spending habits. You don’t need more information.
“If more information was the answer, then
we’d all be billionaires with perfect abs.” Derek Sivers
A personal financial coach can help you restructure your relationship with money. The benefit is that when someone teaches you, it encourages you to teach someone else. Think about everything you’ve ever learned and how eager you are to share it.
The better question here is.
What benefits will the people in your life have when you tackle your financial problems?
What benefits could your children have if you remove stress from their future?
You don’t have to wait, this article will teach you how to teach your children about financial management.
What habits can change my financial situation today?
If you want to change your financial situation today you need to start building habits that support that goal today. Once you master your habits, you will master your money. These habits will help you get a head start on your financial freedom.
What habits can help me tackle debt?
If you’re ready to tackle debt then you’re ready to tackle the habits creating debt. This article will discuss where to start with replacing your bad habits. We all have them, moving forward is harder when we don’t get out of our own way.
Can a personal financial coach help me with debt?
If you have debt, then you should hire a personal financial coach and not a debt consolidator. A personal financial coach can help you identify the habits that got you into debt, to avoid it in the future. While a debt consolidator will help you pay off your debt now but will have no impact on future debt.
Can a personal financial coach train my team?
Yes, while the sessions are usually one on one, a personal financial coach is equipped to train people of all walks of life. Training your team to manage their own money only elevates them and in succession elevates your business. Start with the most important things you should understand about money.
How can I prepare for a recession?
Not everyone benefits from a recession but everyone can benefit from a recession. If you’re ready for the opportunity, you will seize it. Read our article on preparing your household for a recession.
Should my spouse or significant other have access to my business bank account?
The only person who should have access to your business bank account is you. Your accountant may act on your behalf when paying bills or invoices but those are controlled through a set of systems designed to protect your accounts.
If you have a spouse who will need access to your accounts we suggest setting up a joint bank account. If you have questions about the pros and cons of owning a joint bank account, we wrote an article on it here.
How do I know if I’m maximizing my tax deductions?
In order for you to know if you’re maximizing your tax deductions, you need to speak to a tax planner. I know what you’re thinking, we have someone who does our taxes. Preparing taxes is easy, anyone can learn how to do it. But tax laws change and in order to take advantage of them you plan for them.
Is the location of the business important?
The location of your business only matters if your customers need to visit you. For instance, if your business sells its products online, your location matters little. If you’re planning on having prospects meet and customers walk in, you’ll want to be visible and accessible. Real estate is becoming less physical and more digital, with most businesses shifting their attention to media channels for future customers.
I haven’t organized my bookkeeping, what I can do to get organized?
If you find your accounts unorganized and hard to keep track of, it’s unlikely your fault. Getting organized is a two step process. The right system won’t work in the incorrect environment. Getting organized is about finding systems that support your behavior. All decisions are emotional so the right accountant can structure systems that are easy and benefit you.
The second step involves cleaning up the old records. As much as we all would like to start from scratch, sometimes it’s not an option. It’s important to go through old records and make sure all appropriate expenses were paid or all loans due were collected. This is account payable and receivable management.
We can help you specifically set up a system to keep you structured. Find out about our Account Payables / Receivables service.
What is considered a business expense?
A business expense is an expense that must be both ordinary and necessary.
An ordinary expense is just as the name suggests, its common to your trade or business.
A necessary expense is an expense that is helpful and appropriate for your business.
Business expenses should always be separate from:
The expenses used to generate income for the cost of goods sold.
How do I find the right Mentor?
Finding the right mentor is easy if you have direction.
The right mentor should teach you about markets and pricing.
Advertising and marketing.
Financial health and your employees.
Your mentor should have 25+ years of business experience.
Luckily we have one for you.
Where is Anguiano Consulting located?
Anguiano Consulting is located in Victorville California. However, thanks to technology we’ve been serving our owners across the United States.
What if I want to do my own accounting?
Doing your accounting allows you to be constantly hands-on with all your finances. You’ll have more of an understanding but we list the pros and cons of doing your own accounting here.
What’s the best way to get in contact with Anguiano?
We made it as easy as possible for us to connect with you. You can reach us by number during normal business hours or if you need assistance outside of normal business hours, you can leave us a detailed description here.