There are many legal and tax decisions that need to be made before you start your business. Each business and situation is different. Consider what legal structure the business will take and if you will be hiring employees. Research which federal and state laws regulate your industry. Recordkeeping for Small Business Recordkeeping is an essential part of running a business.
Accurate records are necessary to prepare tax returns.
If the business is going to be profitable and successful, business owners need reliable information to make management decisions. Bankers, creditors, and suppliers often want financial reports or records. This handout describes the basic principles of financial recordkeeping and reporting for a small cash basis business. The principles can be extended to those requiring an accrual system. Cash Flow Planning for Business Success Cash flow planning is a useful financial forecasting process available to the small business owner.